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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 JlAqSfXgFVGC7+zNFPSUr3pl2DSH7f3qxjWnwfjtujvj/8MGTt+DzR8pNsA9LMY9
 vfsA8+LpDVQWovT3KnmxTA==

<SEC-DOCUMENT>0001179110-06-015928.txt : 20060801
<SEC-HEADER>0001179110-06-015928.hdr.sgml : 20060801
<ACCEPTANCE-DATETIME>20060801174520
ACCESSION NUMBER:		0001179110-06-015928
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20060801
FILED AS OF DATE:		20060801
DATE AS OF CHANGE:		20060801

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SAFENET INC
		CENTRAL INDEX KEY:			0000850313
		STANDARD INDUSTRIAL CLASSIFICATION:	RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663]
		IRS NUMBER:				521287752
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		4690 MILLENNIUM DRIVE
		CITY:			BELCAMP
		STATE:			MD
		ZIP:			21017
		BUSINESS PHONE:		4109317500

	MAIL ADDRESS:	
		STREET 1:		4690 MILLENNIUM DRIVE
		CITY:			BELCAMP
		STATE:			MD
		ZIP:			21017

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	INFORMATION RESOURCE ENGINEERING INC
		DATE OF NAME CHANGE:	19920703

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			Saunders Philip Seth
		CENTRAL INDEX KEY:			0001371044

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-20634
		FILM NUMBER:		06995493

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		732-294-0199

	MAIL ADDRESS:	
		STREET 1:		13 MAPLE KNOLL LANE
		CITY:			MANALAPAN
		STATE:			NJ
		ZIP:			07726
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgar.xml
<DESCRIPTION>FORM 4 -
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2006-08-01</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0000850313</issuerCik>
        <issuerName>SAFENET INC</issuerName>
        <issuerTradingSymbol>SFNT</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001371044</rptOwnerCik>
            <rptOwnerName>Saunders Philip Seth</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>4690 MILLENNIUM DRIVE</rptOwnerStreet1>
            <rptOwnerStreet2></rptOwnerStreet2>
            <rptOwnerCity>BELCAMP</rptOwnerCity>
            <rptOwnerState>MD</rptOwnerState>
            <rptOwnerZipCode>21017</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>0</isDirector>
            <isOfficer>1</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle>Senior Vice President</officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable></nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Option</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>17.31</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2006-08-01</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>25000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <footnoteId id="F2"/>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F1"/>
            </exerciseDate>
            <expirationDate>
                <value>2016-08-01</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock par value .01 per share</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>25000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>25000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Options vest 25% per year over four years</footnote>
        <footnote id="F2">Grant by issuer</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>Kevin Hicks of SafeNet, Inc. for Philip Saunders</signatureName>
        <signatureDate>2006-08-01</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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